Establishing a stochastic model for optimal decision making incorporating a random sum of discounted random variables

Stochastic modelling strongly contributes to the decision making process. The paper establishes a stochastic model by combining a random variable and a random sum. The theoretical importance of the model is derived by evaluating its characteristic function, while the applicability of the model as an indicator for decision making in various disciplines consists its practical contribution. The paper performs a simulation and analyzes the outcomes.